§ 322F.7 — Violations

Iowa § 322F.7

• Jurisdiction: Iowa
• Title VIII: TRANSPORTATION
• Ch. 322F: EQUIPMENT DEALERSHIP AGREEMENTS

Text

A violation of this chapter includes but is not limited to a supplier doing any of the
following:
1. Requires a dealer to accept delivery of equipment that the dealer has not ordered.
2. Requires a dealer to order or accept delivery of equipment with special features or
accessories not included in the base price list of equipment as publicly advertised by the
supplier.
3. Requires a dealer to enter into any agreement, whether written or oral, which amends
orsupplementsanexistingdealershipagreementwiththesupplier, unlessthesupplementary
or amendatory agreement is imposed on other similarly situated dealers.
4. Requires as a condition of renewal or extension of a dealership agreement that the
dealer complete substantial renovation of the dealer’s place of business, or acquire new or
additionalspacetoserveasthedealer’splaceofbusiness,unlessthesupplierprovidesatleast
one year’s written notice of the condition which states all grounds supporting the condition.
The supplier must provide a reasonable time for the dealer to complete the renovation or
acquisition.
5. Requires a dealer to refuse to purchase equipment distributed by another supplier.
6. Discriminates in the prices charged for equipment of like grade and quality sold by the
suppliertosimilarlysituateddealers. Thissubsectiondoesnotpreventtheuseofdifferentials
which make only due allowance for costs related to the manufacture, sale, or delivery of
equipment, or to methods or quantities of equipment sold or delivered.
7. a. (1) For a dealership agreement governing equipment other than outdoor power
5 EQUIPMENT DEALERSHIP AGREEMENTS, §322F.9
equipment, takesactionterminating, canceling, orfailingtorenewthedealershipagreement,
or substantially changes the competitive circumstances intended by the dealership
agreement, due to the results of conditions beyond the dealer’s control, including drought,
flood, labor disputes, or economic recession.
(2) For a dealership agreement governing outdoor power equipment, takes action
terminating, canceling, or failing to renew the dealership agreement due to the results of
conditions beyond the dealer’s control, including drought, flood, labor disputes, or economic
recession.
b. This subsection shall not apply if the dealer is in default of a security agreement in
effect with the supplier.